LI Home Prices Far From Reality? um...yup!

[TomMoser]

There really is no "industry standard" as all real estate commissions are negotiable. But I can tell you that very few get the 5% to 6% that you mention. The time to negotiate them is up front.

When it comes up at the closing table, it's usually because the seller does not have enough equity to close. Then they talk to their lawyer who then takes me aside and talks to me saying that they "cannot" close unless I cut my commission. My usually response is that I will cut my fee by the exact same amount that he is willing to cut his. Miraculously, they always find another way around the problem.

[thepokerdepot]

Originally Posted by TomMoser

I don't blame them. They earned their money. I can't tell you how many times people have tried to get me to reduce my commission (often at the closing table). I would rather see a deal fall through then reduce my commission.

At the closing table,..that's just not right,..if you did your job, you should get paid.

Although in my situation,.and I think you would agree,..The selling agent had the home listed for 750k,..I offered 650k with a sincere,."Please don't be offended,..but that's what the comps are giving me".
Then the seller agent told my agent that they had offer's for 720k,..so I walked.
Two weeks later,..the seller agent tells my agent,"We could do 700k but you have to buy it now." I said, I could do 660k because that's all I have.

One week later,..the seller agent say's,..we can meet in the middle 680K just because the sellers like you. I said,.I like them too,..but I can't.

2 day's after that the seller agent agree's to cut his wopping 6% commission to 4%. (667K)
I said,..ok,..only if everything is good on inspection,...needless to say,.there are many problems with house and I'm looking for 5k in reduction. Nobody wants to move.

Now,..I bought many homes in my life and 2 from FSBO,..The FSBO went much easier than with REA's. But this is a classic example why some buyers have an negative attidude towards REA's.


I think buyers now,..and I partly agree,..that when the market was hot and buyers where incouraged to take out AMR's,..many REA's kinda hid the dirt under the rug.

Buyers that get the old, "There are other offers",.."This is a great buyers Market" jive,..is getting annoying.

REA's made great money in the last few years,..but are still taking listings that are not close to a realistic selling price,..another fustrating problem for buyers.

However:
I want to leave on a good note for REA's,..there are some great agents and deserve all the praise and trust from buyers. Below is a great example of a great Agent.

REA Tom McGiveron[SIZE=7][/SIZE] whom I would consider a one of the few honest REA's on Long Island takes time to research market conditions and really works for his money. Click his name to see his site,..very good.